An MBA is a Valuable Degree

When measuring the value of an MBA degree, compare the potential earnings with college graduates who earn a bachelor’s degree. According to Business Insider earnings for young college graduates since 2000 have taken a nosedive. In 2000, the college graduate could expect to earn somewhere around $65,000 (in 2011 dollars). Today, the downward sloping line chart points to a $10,000 loss in annual earnings, which has continued for the past six years.

“Class of 2012 grads are breathing a collective sigh of relief—and likely doing some version of the happy dance—as they embark on their post-MBA careers in a job market that looks several shades brighter than when they entered business school just two years ago.”

Blackman bases her evaluation on a report by the Graduate Management Admission Council’s 2012 Corporate Recruiter’s Survey, which reports that “MBA graduates will continue to command higher starting salaries” even compared to other master’s degree graduates. Other report highlights:

♦ Job offers for grads of full-time MBA programs are at a rate of 62%, the best since the all-time 2001 high of 66%.

♦ Almost 80% of surveyed companies said they intend to hire recent MBA graduates this year – up about 15% over the last two years.

♦ The largest demand for new MBA grads will be in companies with 1,000 employees or fewer.

♦ The demand for Master of Accounting graduates is rising, especially among large and mid-sized companies.

♦ Companies want leaders. Companies surveyed said they are mainly seeking candidates who can demonstrate the leadership skills that help make the companies more effective, innovative and responsive to changes in the business environment.

Work experience preferred…

Nowadays recruiters are looking for MBA grads who have real-world work experience gained either before enrolling in their MBA programs or from internships. In either case, companies prefer candidates with more than three years work experience.

Show them the money!

MBA grads getting job offers as a result of their internships show that employers see the value of the internship experience: Typically, interns could expect a much greater salary increase (84%) compared with grads with other job offers (74%). This all translates to a whopping $40,000 more than salaries earned by BA grads! Specifically, in 2012 the median starting salary for MBA graduates in the U.S. is $90,000, and nearly half the companies offer MBA grads a $15,000 signing bonus.